Patty's Quilt Shoppe sells homemade Amish quilts. Patty buys the quilts from local Amish artisans for $260 each, and her shop sells them for $430 each. She also pays a sales commission of 4% of sales revenue to her sales staff. Patty leases her country-style shop for $1,400 per month and pays $1,700 per month in payroll costs in addition to the sales commissions. Patty sold 80 quilts in February. Prepare Patty's traditional income statement and contribution margin income statement for the month. Prepare the traditional income statement for the month. Patty's Quilt Shoppe Income Statement For the Month Ended February 28 Less: Loss Prepare the contribution margin income statement for the month. Choose from any list or enter any number in the input fields and then continue to the next question. Patty's Quilt Shoppe Contribution Margin Income Statement For the Month Ended February 28 Less: Less: UIT Perry Corporation produces and sells a single product. Data for that product are: Sales price per unit $250 Variable cost per unit $180 Fixed expenses for the month $600,000 Currently selling 12,000 units Upper management is considering using a biodegradable packaging which costs $5 more per unit but it produces less waste in the long run. Management plans to increase advertising by $10,000 in the first month (fixed cost) to advertise this new feature to their packaging. They believe that environmentally friendly people will switch to their product resulting in an increase in sales of 2,000 units per month What should be the overall effect on the company's operating income in the first month if this change is implemented? A. Decrease of $80,000 B. Increase of $60,000 OC. Decrease of $60,000 D. Increase of $80,000